NMLS ID #211652 Arizona, Loan Consultant

Monthly Archives: September 2013

It’s been a 30 year ride for me in this business. I thought it was time to reflect where the industry has been and where it may go. It certainly is not a boring job. I find it an exciting challenge to daily talk to people and work with them towards their goal of buying a home.

The industry has been in the news a lot in the last 7-8 years and there has not been a dull moment. There have been a lot of changes in the rules and just keeping up with those has been a huge undertaking, but it just takes me back to when I first started out. We verify everything. It’s the way it should be.

I have been through real estate booms and busts, trends come and go and so do people I have worked with. The industry has done some weeding out and hopefully most of the bad apples are gone and hopefully industry standards are where they should be.

What remains the same is that Americans still want to own their homes. I find that people place an enormous amount of trust in my hands and I do everything I can to make their homeownership goal a reality. What has changed, though, is the difference about how a mortgage is originated. The online channel has grown and the mortgage industry has finally automated the process to an almost paperless process. Yea!! Gone are the file folders of 3-8 inch thick loan files and pdf versions of documents loaded into our processing system has make copying and faxing a near thing of the past.

What I still feel is important is the relationship of the quality referral to an experienced and trusted lender. Though online access is readily available, the referral to your mortgage lender is important because they are handling all of your personal information and the trust factor is imperative as to who has your information.

When looking to purchase a home in a condominium project, there are a few things to consider. Condominiums are treated a little differently than a single family detached or even an attached home in a homeowner’s association subdivision. The overall financial health of the condominium association is scrutinized. As a result, the project must be acceptable by guidelines put in place by Fannie Mae, Freddie Mac, FHA or VA. The scope of the guidelines and the specific eligibility criteria are dependent upon whether the condo project reviewed is an established community or new construction. I am going to focus on established projects and conventional guidelines. Below are guidelines for such condo projects:
• at least 90% of the total units in the project have been conveyed to the unit purchasers;
• the project is 100% complete, including all units and common elements;
• the project is not subject to additional phasing or annexation; and
• Control of the homeowners’ association has been turned over to the unit owners.
Some General Questions to ask about the Condominium Association
• Is there current litigation involving the association?
• How many units are investor units out of total count?
• Are there more than 15% homeowners 30 days or more delinquent in association fees?
• Does any single entity own more than 10% of the units?
By getting answers to these few questions, you may find out sooner than later whether you will have difficulty obtaining financing for the home you want to purchase.
Condo Insurance Requirements
The condo project insurance policy must ensure the homeowners’ association maintains a master or blanket type of insurance policy, with premiums being paid as a common expense. The insurance requirements vary based on the type of homeowners’ association master or blanket insurance policy. Also, be aware there must be a fidelity bond coverage or employee dishonesty coverage which covers against theft by those entities handling community funds. As for unit coverage, there are a couple of types available and you must check with your lender for what is required:
“All-In/Single Entity” (sometimes known as an “all-inclusive”): The policy must cover all of the general and limited common elements that are normally included in coverage. These include fixtures, building service equipment, and common personal property and supplies belonging to the homeowners’ association. The policy also must cover fixtures, equipment, and replacement of improvements and betterments that have been made inside the individual unit being financed. If the unit interior improvements are not included under the terms of this policy type, the borrower is required to have an HO-6 policy with coverage, as determined by the insurer, which is sufficient to repair the condo unit to its condition prior to a loss claim event.
“Bare Walls”: This policy typically provides no coverage for the unit interior, which includes fixtures, equipment, and replacement of interior improvements and betterments. As a result, the borrower must obtain an individual HO-6 policy that provides coverage sufficient to repair the condo unit to its condition prior to a loss claim event, as determined by the insurer. Depending on the type of loan you choose there can be a requirement for flood insurance.
Buyers need to know this information when looking into purchasing a condo. To determine eligibility for your condominium contact your lender and discuss what information you have and need to obtain for a smooth transaction. This adds an additional step to your mortgage process so make sure you have sufficient time to process your loan application.
For questions or suggestions please feel free to email me at Ingrid.Quinn@CobaltMortgage.com or visit me at either http://www.ScottsdaleMortgageExpert.com or http://www.CobaltMortgage.com/IngridQuinn

40 million Americans have errors on their credit report and 20 million of them are significant mistakes. Statistics provided by http://www.cbsnews.com/video/watch/?id=50153672n Almost everyone I speak with is not familiar with the real credit report site that is the one that offers you a free report that you are entitled to every year. The website is http://www.annualcreditreport.com as listed on ftc.gov . Removing errors is your responsibility, and it takes some time and patience.
As you go into this site, it will ask you for some personal information. Then it will ask which report you would like to obtain first, Experian, Transunion or Experian. Once you select your bureau, you may need to work through all the services it offers to get to the free report. You do not need to sign up for monitoring and you will have to pay for your score if you want to receive it. If you order one score to get an idea of where you are, choose Equifax or Experian. I have found these bureaus more widely used by creditors and most accurate reporting.
Once you have your reports, review them for accuracy. Conventional, FHA, VA loans do not accept a disputed item that carries a balance to be open on your report.
Below are 7 tips to Fix Credit Mistakes as recommended in an article published on the National Association of Realtors website http://www.houselogic.com/home-advice/home-taxes-financing/dispute-my-credit-report/# :
1. Fix the Error Immediately
2. Make sure you Fix all bureaus
3. Report Credit Fraud to credit bureaus, police and the FTC.
4. Mistakes usually originate with the creditor. Contact them first.
5. Contact your state’s attorney general office if you need additional help.
6. Have proof to back up your claim.
7. Have patience and save all documentation, emails and correspondences. Get corrections in a letter on the creditor’s letterhead for your records.
Credit bureaus make money by gathering information from the people we do business with and then sell that information to banks, merchants, insurance companies and employers who use it to make decisions about our credit worthiness and reliability.
(quoted from http://www.cbsnews.com/video/watch/?id=50153672n)
Your credit is your responsibility.If you have success stories about how you were able to correct errors, I would love to hear about them. Contact me at Ingrid.quinn@cobaltmortgage.com or visit my websites at http://www.cobaltmortgage.com/ingridquinn or http://www.scottsdalemortgageexpert.com.

In Arizona some people are concerned that we are experiencing another market bubble. There are new regulations that have been put in place to ensure that the quality of loans made now will not have the devastating effect it did 8 years ago. In the mortgage industry, we have seen that these new regulations may cause the process to purchase a home to be a little more time consuming, but it’s better to be safe than sorry. One of the main regulation changes is in the ability to choose an appraiser.
Due to the HVCC (Home Valuation Code of Conduct) put into effect in 2009, in an effort to ensure the stability of the housing market, lenders across the country are required to have an appraiser randomly selected. HVCC is a set of rules for the mortgage lending and real estate appraisal industries. The intended purpose of the HVCC is to protect appraiser independence and prevent pressure from being applied to appraisers to produce a desired property value. Ultimately, these safeguards are intended to protect consumers.
Loan officers are not permitted to discuss the appraisal and value with the appraiser directly. Appraisers (who now know they are under Federal scrutiny) have made it a regular practice to conservatively appraise Arizona homes. This stabilizes the inflation rate of home prices in Arizona and in turn does not allow the market in rapidly increase, leading to another bubble.
Another aspect that has changed is the necessary documentation required from a borrower trying to get a home loan. I have written on this subject before, but feel that it needs to be touched on again.
Many clients have jokingly asked “what else do you need? a blood sample?” I understand that Loan Officers are very specific on what they ask for and it can get very tedious, however, there is a reason for this. Borrowers that cannot demonstrate an ability to save have a higher chance of missing mortgage payments and/or foreclose. Now, borrowers are permitted to receive a gift from a family member. This may seem strange because if a borrower receives a gift it does not show their capability of saving. What it does show is the support and backing from family/friends.
Many people may not agree with the new regulations, but they are in place. They are there to protect not only our market from another downturn, but also to protect the borrowers from possible financial turmoil. Borrowers should not hesitate to ask questions during the loan process. At the same time, borrowers also need to be understanding and accommodate the requests that may come from your loan officer. For any questions or comments, please feel free to contact me by email Ingrid.Quinn@cobaltmortgage.com or visit me at http://www.CobaltMortgage.com/IngridQuinn or http://www.ScottsdaleMortgageExpert.com

Credit, Credit, Credit! Your credit score is a crucial part of your financial future and present. Whether you are looking to open a credit card, buy a home/vehicle your credit score will not only dictate your ability to make that purchase, but also what interest rate you will have. You have three different credit scores, but for this article I am going to focus in on one and that is your FICO credit score. It registers on a range of 300 to 850.
You should strive to have a score of 780 or higher to be in the best shape to make major purchases with the best interest rates. In the mortgage industry we suggest that our clients hold a minimum of a 620 credit score. This is primarily the lowest score most, not all, lenders have as a threshold for a mortgage.
Now let’s get down to what this article is all about. What can damage your credit score and what you should look out for. I will discuss seven different things that can greatly affect your credit score.
Carrying Large Balances:
You should never accumulate large amounts of debt. Yes, keeping a large balance on a credit card can enable you to increase that cards limit. However, you need to be aware that your debt effects about 30% of your overall credit score.
Closing Credit Cards:
This may seem like a smart move if you are having credit issues, but the length of time you hold a line of credit also effects your credit score. If you are able to maintain a credit card for many years it looks much better on your credit as opposed to quickly paying off balances and closing cards.
Paying Late:
Nobody wants to see a late payment charge on their account and payment history is a major factor that lenders look into. For your FICO credit score, payment history makes up about 35% of the score.
Defaulting:
It may seem obvious, but failing to pay back an owed amount to a lender will severely damage your credit score. The largest form of default is bankruptcy or foreclosure on a home. Both of these situations can easily cut your credit score by 100 points.
Having to many lines of open credit:
This is when the age old phrase “to much of a good thing,” comes into play. Applying for a loan or credit card with numerous creditors can cause your credit score take a small hit. If you apply for multiple lines of credit at the same time, those little hits will add up quickly.
Not Having a Credit Card:
Many people are cutting up their cards and closing their accounts in hopes of helping to keep them out of debt, but this is a double edged sword. On the one side you are not accumulating more debt and in turn do not have to worry about payment. On the other hand, you are not showing payment/credit history and are not helping your credit. Having a small credit card that you use for something specific like fuel or groceries is smart to have as long as you are able to make your payment at the end of the month.
Co-Signing:
We all have friends and family we care about. There are times where those people may need our help to qualify to receive a line of credit. You must take precautions when choosing to co-sign on anything. If you are not fully capable of taking on that debt alone it may not be the best choice to help. You should always prepare for the worst and if for some reason the person you co-sign with is not able to make the payment it will become your responsibility. You don’t want to be faced with a collection agency looking for money from you because you tried to help someone out.